PAN African Resources achieved its adjusted gold production forecast for the 12 months ended June and said output for the current financial year would increase.
Commenting in an operational update, the South African gold producer said output of 175,209 ounces for the year was less than the 205,000 to 195,000 oz previously forecast, but marginally better than adjusted guidance of 175,000 oz.
An all-in sustaining cost of between $1,325 to $1,350/oz is expected to be reported for the 12-month period, it said. This compares to previous guidance of $1,250/oz.
Pan African is due to report its full-year operational and finacial numbers on September 13. Shares in the company are down a fifth on a 52 week basis.
Pan African said in May at the time of adjusting guidance that Eskom load curtailment, slower than anticipated adoption of continuous operations at its Barberton Gold Mines, and underperformance at Evander Gold Mines were to blame for a production undershoot.
However, operational initiatives aimed at improving performance had since taken hold with production for the current financial year expected to come in at between 178,000 and 190,000 oz, it said in the update.
“Despite the previously flagged challenges experienced at our underground operations, the group delivered a robust financial performance for the reporting period,” said Cobus Loots, CEO of Pan African. “The continuous operations at our Barberton underground mines and other improvements are now positively impacting production, with increased production expected in the year ahead,” he said.
Net debt had been reduced to $18.9m as of June 30 from a previous $49.9m as of December 31.